B. Beresov, P. Peterson
P.: We are to take up one more question.
B.: I suppose it may concern the terms of payment.
P.: Thats right. We would ask you to increase the advance payment to 500.
B.: A 10% advance payment is our usual practice.
P.: Im afraid it is insufficient in this case taking into account our meeting you halfway in granting you earlier delivery dates.
B.: Let it be so.
P.: You are to open an irrevocable letter of credit with TLC bank.
B.: We shall open a letter of credit as soon as we receive a notification that the first consignment of goods is ready for shipment.
P.: The letter of credit is to be valid for 5 days.
B.: That goes without saying.
P.: Thank you. I must say that we are quite satisfied with the results of the deal.
B.: We are also very pleased to have negotiated with you.
IV. Make up dialogues based on the following assignments:
1. Meet your customers representative in Kazan to explain why you delay opening a L/C. Ask him not to postpone deliveries as your Russian partner expects the goods within the contractual dates.
2. Phone Mr. Brown, your buyer. Find out when and where you could meet him. Say you would like to discuss some points concerning execution of his order with him.
3. Meet your future customer. Ask him what he thinks of your draft contract. On the whole the draft is acceptable but the customer wants you to reconsider the terms of payment. Finalize the outstanding points.
4. Get in touch with Brown & Co and thank them for their enquiry. You are prepared to sell them machines on the terms stated in their letter, though you cannot accept their terms of payment. State your terms of payment.
V. Read and translate the text:
No Funds
Indignantly a daughter said to her father when he returned home one evening: Dad, why in the world did you tell me to put my money in such a bank? Why, it's absolutely on the rocks.
What, said her father, that's one of the strongest banks in the country. What do you mean by such a statement?
Waving a check in the air, his daughter replied, Look at this. It's my check for $25.00 and it was returned today by the bank and marked No Funds.
VII. Credit Letters
Credit Inquiries
When a new customer asks for credit, the supplier must first find out whether the customer is creditworthy. To this end, he sends credit inquiries (or: status inquiries) to possible sources of information.
The most important credit information sources are:
1. the customer (he may be asked to furnish information about himself, for example, by filling in a credit application form, or by submitting a copy of his latest balance sheet),
2. the customer's trade references (other suppliers whom the customer has given as references),
3. the customer's bank references (the banks named by the customer),
4. other firms known to have done business with the customer,
5. inquiry agencies (US: commercial or mercantile agencies).
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It should be noted that banks give information only to other banks. Therefore, a supplier seeking information from his customer's bank can secure this information only through his own bank.
This chapter is chiefly concerned with inquiries addressed to trade references. When such inquiries are made, the inquirer should always be aware of the fact that he is asking a favour. Credit inquiries are often accompanied by a stamped and self-addressed envelope or, if they are sent abroad, by an addressed envelope and an International Reply Coupon.
Many letters of inquiry do not mention the name of the person or firm about whom the inquiry is made; the name is placed on a separate sheet of paper which is attached to the letter. This is done to ensure confidential treatment of the matter.
The inquirer must, of course, assure the firm he is writing to that the information given will be treated confidentially and without responsibility on the latter's part.
Credit inquiries often close with an offer to reciprocate favours. Many businessmen feel, however, that this goes without saying.
Letters requesting credit information, and the envelopes, in which they are sent, are marked Confidential, Strictly Confidential, or Private and Confidential.
Credit Information
Business firms are under no obligation whatsoever to answer credit inquiries. Usually, however, they are quite willing to cooperate, knowing that they, too, have to ask similar favours from time to time.
In replies to credit inquiries, the name of the person or firm about whom information is given is often omitted; instead, reference is made to the firm in question, the firm mentioned in your letter, the firm about which you inquire, etc.
Terms and phrases
| a. Opening Phrases | |
| Your name has been given us as a reference by Messrs. Black & Co. | Black & Co. |
| The firm whose name appears on the enclosed slip (The firm mentioned on the enclosed slip of paper) has placed a first order in the amount of | , (, ), ... |
| Mr. Smith is seeking an account with us with a credit limit of | |
| Messrs. Baker & Sons wish to enter into business relations with us. | Baker & Sons . |
| As this firm is unknown to us | |
| As we have not done business (have not had any dealings) with this firm so far | ( ) |
| b. Information Requested | |
| We shall appreciate (We should be grateful to you for) any information you can give us about the firm in question. | ( ), . |
| We should be glad if you would give us some dtails (particulars) regarding (concerning) | , |
| financial standing / financial status | / |
| credit standing / credit status | / |
| ability to meet financial obligations | |
| turnover | |
| business conduct / manner of dealing | |
| business methods | |
| reliability | |
| Do you think it would be reasonable (justifiable, in order, a fair risk) to allow them a credit of about ? | , (, , ) |
| To what figure do you think we could safely go? | , ? |
| Any other information you could supply would be appreciated. | , . |
| c. Promising Confidential Treatment and Offering to Reciprocate Favours | |
| Your reply will be treated as strictly confidential (in strict confidence, in absolute confidence). | . |
| You can rely on our treating your information with the utmost discretion (with the strictest discretion). | , . |
| We shall be glad to reciprocate this favour at any time. | . |
| If we can be of assistance to you in a similar case (If we can render you a similar service), please let us know. | ( ), , . |
| d. Favourable Information | |
| The firm about which you inquire (The firm mentioned in your inquiry) has an excellent reputation. | , (, ), . |
| They are old-established traders who enjoy unquestionable confidence. | , . |
| They have considerable resources (considerable funds, a considerable amount of capital) at their disposal. | ( , ). |
| They have always met their obligations promptly. | . |
| They have always been punctual in paying their bills. | . |
| They usually take advantage of cash discounts. | . |
| They have been regular customers of ours for the past five years. | . |
| We think (believe) that you will not be taking any risk in granting them a credit up to | (), , |
| e. Unfavourable Information | |
| In reply to your letter of we regret to inform you (we are sorry to inform you) that we do not consider it advisable to grant any credit to the firm in question. | (), ( ), () . |
| We have learned from reliable sources (We have it on good authority), that they are having financial difficulties. | ( ), . |
| They are reported to be in a precarious financial position. | , (). |
| Owing to the failure of one of their customers they have suffered (sustained) considerable losses. | - , () . |
| It seems (It appears) that the firm is insufficiently provided with capital (is undercapitalized). | , . |
| During the past six months they have been slow in paying their debts (there have been repeated delays in payment). | 6 ( ). |
| f. Requesting Confidential Treatment | |
| May we ask that you treat this information as confidential? | , . |
| This information is for your own use only and given without responsibility. | - . |
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Specimen letters
Credit Inquiry
Private and Confidential
Dear Sirs,
We have been referred to you by the firm mentioned on the enclosed slip and should be glad if you would give us as detailed information as possible regarding their financial status and business reputation. In particular, we should like to know whether, in your opinion, a credit to the extent of approx. £3,000 could be safely granted.
We thank you for your courtesy and assure you that your information will be treated confidentially. For your convenience we enclose a stamped and addressed envelope.
Yours faithfully,
Encl.
Credit Inquiry
ROAD EQUIPMENT COMPANY
116 N. LA SALLE STREET, CHICAGO 1, ILL.
TELEPHONE
RANDOLPH 8-6430
February 3, 20
John Miles Tractor Company
619 Stonegate Road
Peoria, Ill. 61601
Re: Cooper Construction Company
Springfield, Illinois
Gentlemen:
We understand that you are familiar with the affairs of the above company, from which we have just received a large order.
Will you kindly give us your opinion of the company's financial responsibility, credit standing, and general management. If you are granting accommodations, we should like to know the extent of the accommodation, the amount at present owing you and, if on a secured basis, the nature of the security.
Your reply will be appreciated, and we assure you that any information you may give us will be held in strict confidence. Should the occasion present itself, we shall be very glad to reciprocate the favor.
Yours very truly,
C.F. Cummings
Credit Department
CFCummings:jn
Favourable Information
Private and Confidential
Dear Sirs,
Messrs. Johnson & Co., about whom you inquire in your letter of 17th March, have done business with us for the past two years. Orders have been comparatively small and payments regular, with a short delay in one case. Our representative reports that the firm is sound and reliable. A credit of £400 would appear to be in order.
This information is given in confidence and without responsibility on our part.
Yours faithfully,
Unfavourable Information
Private and Confidential
Gentlemen:
We regret to state, in response to your letter of May 28, that our experience with the firm in question has not been satisfactory.
During the ten months they have had an account with us, we have repeatedly had difficulties in collecting bills. It seems that their financial position is not very strong.
Under these circumstances we would advise you to proceed with caution and, if possible, to do business on cash terms only.
This information is given without any obligation on our part, and we trust that it will be held strictly confidential.
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Very truly yours,
Tasks
I. Translate letters from Russian into English:
